An Introduction To GPS Fleet Management

A Business Manager's Guide to GPS Fleet ManagementTechnology

This paper was written as a guide for business owners andmanagers, to assist in evaluating the technology available for monitoring and managing business fleet operations. Itaddresses some of the most important reasons to consider a fleet management technology investment, such as:

• Reducing risks for employees and vehicles• Protecting the business fleet investment• Saving money through improved operations• Improving and sustaining overall profitability

Using non-scientific business language together with descriptivediagrams, it guides managers through several aspects of thedecision-making process, with special sections dedicated toan explanation of GPS satellite technology; comparing andcontrasting available GPS fleet management systems; factors toconsider and questions to ask in the integration process; andputting it all together for typical fleet management operations.

The question used to be, "Do I need a fleet managementsystem at all?" Not any more. Now the question is: "Whichsystem is right for my business?" This guide to evaluatingwhat is available on the market today will assist in makingthat decision. As you will see, the best systems available aredesigned to pay for themselves through reduced costs andimproved operational efficiency.

Contents

Introduction 1

Leveraging Technology for Business Fleet Applications 3

Traffic Safety 4

How GPS Works 5

The Business Case:

Top Ten Reasons to Consider GPS for Fleet Management 7

Vehicle Life Factors 8

Comparative Systems: Passive, Active or Hybrid? 9

Putting it all Together:

Equipping a Business for GPS 13

Checklist:

Selecting a GPS Fleet Management System 15

FAQs 17

Conclusion 18

Glossary 19

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3

Leveraging Technology for Business Fleet Applications

In more ways than we can imagine, informationtechnology has irrevocably altered the way theworld does business. It enables rapid globalexchange of commerce and ideas, provides toolsfor efficiency of operation and enhanced produc-tivity. Moreover, it puts business managers in theposition to evaluate, measure and assess the effec-tiveness of their systems in real time and in waysunheard of even ten years ago.

"You can't manage what you cannot (or do not) measure."

An oft-quoted maxim for continuous improvement:"You can't manage what you can not (or do not)measure." Information technology has made itpossible to confirm transcontinental shipments viathe Internet within seconds; to contact key busi-ness partners at any time, anywhere on the planet;and to track inventory and business assets aroundthe clock. The tools for measurement are readilyavailable. The technology is in place. Whatstands between many businesses and the full opti-mization of the technology can typically be sum-marized in one of the following three statements:

1. Education: The business does not recognize or completely understand the value of improving their operations with existing technology.

2. Fear: The business is reluctant to embrace new technology because of uncertainty or concerns about the impact on the existing business model.

3. Reluctance: The business hesitates to make an investment in technology today because the speed of innovation threatens to make that investment obsolete tomorrow.

These responses, while understandable, are coun-

terproductive because they prevent or delay thecompany's ability to take advantage of improvedproductivity, operational effectiveness and profitpotential that go hand-in-hand with technology-enabled systems.

For companies that rely upon service, delivery andtransport vehicles to accomplish their core busi-ness, the promise of fleet management technologybegins with measurement and expands to includesuch areas as safety, assurance and cost savings.This paper is written to provide the reader withsome of the basic concepts, capabilities and fea-tures of existing fleet management technology.

Fleet management is a blend of activities and func-tions related to the maintenance, accountabilityand efficient operation of a company's mobileassets. Whether a company uses technology tostreamline this group of tasks, the elements gener-ally include the following:

• Record-keeping and compilation of data relative to the fleet operations

• Accountability of company vehicles and mobile assets

• Maintenance and repair of vehicles and systems, including verification of service intervals

Effective fleet management makes it possible for thecompany to accomplish these general tasks andimprove, as a minimum, each of the following areas:

Ensuring Employee Safety: Most companiesthat rely on drivers and fleet vehicles to get the jobdone have adopted "zero tolerance" policiesagainst drug and alcohol use and other illegalbehavior on company time and in company vehi-cles. In an effort to stay ahead of regulatory com-pliance issues, many companies are also carefullyevaluating driver safety factors, such as accidentrecords, traffic infractions and speeding.

A 2002 study published by the National Federationof Independent Business (NIFB) ResearchFoundation highlights the new considerations fora service-oriented business environment. Safetyin the industrial and manufacturing sectors hasbeen under close observation due to governmentregulation, labor law compliance and employee-rights watchdog groups.

During the last century, these sectors have con-tracted in North America to such an extent that"traffic accidents - not workplace accidents - arethe greatest on-the-job hazard." Congestion andconstruction on highways and roads, combinedwith rapid urban sprawl in many areas, createsan increasingly dangerous environment for eventhe safest drivers on the road. Following are afew of the observations of the NIFB study:

DRIVING IS PART OF THE JOB: With the serv-ice-based businesses on the rise, workers areincreasingly getting their jobs done outside of thedefined four walls of a company. More than 60percent of the survey respondents routinely hireemployees who will be required to drive in sup-port of the business needs. The study also indi-cates that at least a third of small businessemployees will eventually be required to drive forbusiness-related reasons.

TRAFFIC ACCIDENTS EMERGING AS TOPCONCERN: As worker mobility (and related travel)increases the concern of small business ownershas also gone up; 38 percent of the NIFB surveyparticipants indicated traffic accidents as theirgreatest safety concern.

DRIVING RECORDS A FACTOR IN EMPLOY-MENT: According to the study, 57 percent ofsmall business owners are conducting back-ground checks to evaluate such factors as trafficviolations and offenses, convictions for drivingunder the influence of alcohol or drugs, andtrends in driver behavior.

Speeding is, in fact, breaking the law, but has notbeen scrutinized as closely as drug and alcoholuse. One reason for this is that the ability to auditand enforce compliance with speeding policies didnot exist - with GPS fleet management, it is notonly easier to assess, but can also be reportedinstantly and automatically depending on thecapabilities of the system.

Protecting the Fleet Investment: In a typicalsmall- to mid-sized service business, initial fleetvehicle investment can represent as much as 70 per-cent of a company's fixed asset base. Maintenance,leases and payments, variable fleet costs, and insur-ance of the trucks, vans and other vehicles can rangefrom as low as $200 to well over $300 per month, pervehicle; a significant amount of the operating budgetthat squeezes already-tight margins.

Sustaining Profitability through EfficientOperations: Ensuring the longevity and efficien-cy of the vehicles is a key factor to sustained com-petitiveness. Equally important to a company'slong-term success: consistently superior customerservice; containment of overhead costs forimproved profitability; and employee commitmentand involvement in improving the bottom line.

Effective fleet management systems help businessmanagers to achieve all of these goals. Adding aGPS-tracked system makes this process easierthrough record-keeping automation, verifiableaccuracy and around-the-clock capability.

For years, managers have relied upon driver logsheets, service forms and other paper record keep-ing systems to keep track of business fleet vehicleoperations. To the extent possible, much of thisprocess has been automated, but invariably a fleetmanager is required to sort through often-incom-plete sheets of paper to reconstruct vehicle records.Technology now exists to improve this process.

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Traffic Safety

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GPS location-based technology relies on a networkof 24 active NAVSTAR satellites, orbiting theEarth at an altitude of over 12,000 miles (20,000km) and constantly transmitting radio signals toground-based stations and GPS receivers on Earth.What the satellite transmits is its own proximatelocation to Earth, as well as the precise time oftransmission using synchronized atomic clock data.

From this information, the receiver is able to cal-culate its latitude and longitude based on the sig-nal strength and location of the satellite, accurateto within ten meters. This method, referred to as"triangulation," uses signal information from atleast three satellites to determine a location on theground. The greater the number of satellites withinline-of-sight range of the receiver, the greater theaccuracy of the location data. Using permutationsof the same data, the GPS receiver can also calcu-late the vehicle's speed and direction. GPS technology, combined with analysis and map-ping software, provides a "bird's eye view" of the

fleet vehicle activity, instant locations, and graphicannotation of key events, such as:

• Service stops and customer locations• Vehicle speeding infractions • Onboard equipment usage • Route tracking, including driver stops and

variations from route• "Geo-fencing" verification to ensure vehicles

stay within a defined geographical area• Fleet vehicle location, on demand or at pre-set

intervals, for immediate dispatch or periodic update (interval can be set by the manager)

Fleet management systems provide instant accessto this data, as well as detailed analysis tools tomeasure driver efficiency, review vehicle mainte-nance history, assess fuel usage, and instantly spotanomalies such as driver speeding, unauthorizedvehicle usage, and vehicle stops that are inconsis-tent with business requirements.

How GPS Works

Originally designed by the US military for world-wide navigation and precision guidance ofweapons systems, GPS satellite technology wasadapted for commercial use in 1982. GPS technology is commonly associated with thefollowing applications:

• Automotive navigation and onboard assistance• Aircraft navigation and flight planning• Sports and recreation, such as golf, fishing

and hiking• Commercial and consumer automatic vehicle

location (AVL) services

GPS technology is a critical component of theemerging telematics industry, combining wirelesscommunications, Internet- and computer-basedsoftware and the latest in vehicle-based tracking,location, monitoring and diagnostic capability.

The net result: a fact-based management informa-tion system that measures vehicle operational effi-ciency, driver safety, route effectiveness, and auto-mates vehicle record-keeping, maintenance inter-vals, mileage logs, service records, and muchmore. In short, the right system can provide:

• Complete driver accountability• Reliable fleet operations data• Automatic reports and data analysis• Reduced liability and vehicle costs• Verification of hours and service stops

GPS fleet management systems are designed withone primary goal: to save business managers timeand money. Having this technology gives busi-nesses a clear competitive advantage. Access tovehicle efficiency and driver productivity datahelps a business manage the costs related to fleetoperations, including: engine service and vehiclemaintenance, fuel, tires, insurance, customer serv-ice issues, employee overtime, workers compensa-tion and liability from accidents.

GPS fleet management systems also provide man-agers with a way to capture opportunity costs, suchas more efficient service or delivery routes, identi-fication of problem areas, verification of sustainedcustomer service, and protecting the company'sreputation and substantial vehicle investment.

Following are some of the typical advantagesreported by companies with GPS fleet managementsystems in place:

Reduced overtime - as inefficient routes, unsched-uled stops and unauthorized trips are identified,many companies have reported an immediatedecrease in reported hours on time sheets, as wellas an overall reduction in hours due to productivityimprovements.

Reduced fuel costs - vehicles driven at excessivespeeds waste fuel. This cost is further compound-ed by unauthorized and/or after-hours companyvehicle use, both of which can be identified andcontrolled using a fleet management system.

Reduced accident and liability claims - leftunchecked, some drivers put the company at riskwith behaviors and activities such as making unnec-essary cross-town trips that require speeding to thenext scheduled job, or driving in a way that exposesa business to higher insurance costs and liability.

Reduced maintenance costs - vehicle abuse addsup over time; an engine left idling all day to keepthe air conditioning on takes its toll; speeding leadsto wear and tear and premature replacement oftires; and a vehicle that misses scheduled oilchanges inevitably breaks down. All of these fac-tors have an impact on a business fleet; with theright system in place, they can be monitored andcontrolled.

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Automation of many record keeping functions

• Schedule and verify vehicle and equipment service intervals

• Track service locations, equipment drop-off points and routes used

• Electronic records of employee hours and vehicle mileage

Improved Operations

• AVL systems enable real-time decision making• Real-time accountability of drivers and assets

Decreased Wear & Tear

• Curbs on speeding prevent excessive tire and engine wear

• Verifiable service intervals extend life of vehicles and equipment

• Elimination of unauthorized use reduces overall fleet mileage

Better Use of Company Resources

• Active management of vehicles enables fact-based decisions

• Identify and stop unauthorized vehicle use immediately

Efficient Route Management& Dispatching Support

• Find and control service and delivery route overlaps

• Use real-time driver locations for time-sensitivedispatching

• Evaluate problem traffic areas to prevent service delays

Faster Response Time

• Automation of record keeping improves driver efficiency

• GPS locations assist in guiding lost drivers to service locations

Reduced Liabilility & Insurance Costs

• Many insurance companies offer a discount with GPS system in place

• Protect against false claims with verifiable vehicle data

Employee Safety

• Keeps drivers focused on safe driving and staying on their routes

• Companies can reward safe driving behavior based on data

• GPS location data enables emergency assistance

Better Customer Service

• No more second-guessing on missed service complaints

• Verify services performed and time spent with each customer

• Provide location and ETA on critical services and shipments

Improved Bottom Line Performance

• Significant decreases in overtime and driver "down time"

• Reduced maintenance costs go right to the bottom line

• Route efficiency and fleet metrics allow for expanding customer base

The Business Case:

Top Ten Reasons to Consider GPS for Fleet Management

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Vehicle Life Factors

Argonne National Laboratories, part of the US Department of Energy, conducted a studyon the aggregate effects of excessive engine idling and speeding as part of overall vehicleoperational costs …

ENGINE WEAR-AND-TEAR: Ideal driving speedfor the average truck is 50-55mph; the power required to increase speed multiplies dramatically:

• 73% more horsepower to cruise at 60 mph• 159% more horsepower to cruise at 70 mph

FUEL CONSUMPTION: Each mile per hour above 50 mph increases fuel consumption by one-and-one-half (1½) percent. A truck, which averages 8 mpg at 50 mph, will average 6.8 mpg at 60 mph.

EFFECT ON TIRES: Sustained speeds raise tire temperatures above the criticallevel, causing strength and wear properties to deteriorate rapidly. Tire wear willalmost double at road speeds of 70 mph or greater.

MAINTENANCE COSTS: Gears, bearings, clutches, suspension and drive trainswear much faster at higher speeds. Increasing speed from 50 mph to 60 mphincreases maintenance cost by 38%. Increasing the speed to 70 mph increases the cost by 80%.

ENGINE IDLE EFFECTS: Running a vehicle at idle speed dramatically reducesengine life; 60 minutes of idling is equivalent to between 80 and 120 minutes of driving time. The resulting loss of fuel economy from excessive idling can add up to 800 gallons of fuel annually for the average truck.

ACCIDENT AVOIDANCE: Approximate stopping distances, factoring in the reactiontime for the average person driving a 2-axle truck, are listed below:

• 50 mph - 275 feet (.92 football fields)• 60 mph - 375 feet (1.25 football fields)• 70 mph - 500 feet (1.67 football fields)

At 70 mph, stopping distance is 63% greater than at 50 mph. Even in daylight, higherspeeds will significantly increase accident probabilities.

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Comparative Systems: Passive, Active or Hybrid?

A key differentiation between "fleet management system" (FMS) and "automatic vehicle location"(AVL) systems on the market today is how they handle vehicle information, how they ultimately com-municate back to the home office, and where information is stored in the process.

There are four principal categories of GPS-enabled fleet management systems on the market today.This is a general overview of each type of system, with an observation of the potential "pros" and"cons" associated with each:

An on-board device records GPS signal data duringthe vehicle operations. Information is stored forretrieval and upload to the principal fleet managementcomputer when the vehicle returns to home base.

Alternatively, removable memory modules can beexchanged in the field, away from the office, bymail or during scheduled meetings. The "passive"GPS system is often the best solution for data col-lection on vehicles that are on the road away fromthe home office for weeks or months at a time.

"Passive" (or Stored Data) System

PROS:

• Provides a workable solution for fleets andcompany vehicles that do not return to a motor pool or home office every day.

• Gives specialized staff, such as salesrepresentatives, the ability to distinguish between personal and company business vehicle use.

• This is frequently the most economical choice, managed "hands on" by the companythat purchases the system and requiringno communication service contracts.

CONS:

• May require the use of a data module or otherremovable/exchangeable device in order to retrieve vehicle information.

• Does not allow for real-time location or remote accountability.

GPS SIGNALS

STOREDDATA

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"Active" (or Real-Time) System

Again, relying on a vehicle-mounted GPS receiver,the "active" system also requires a wireless com-munication conduit such as a cellular data linebuilt into the device. At a set time interval, thesystem transmits location data, (latitude and longi-tude) speed and direction of travel over the wirelessnetwork to a dedicated data collection point. Thisdata can be transmitted directly to the fleet homeoffice or compiled for transfer to an Internet sitewhere the subscribing company can view its fleetactivity.

PROS:

• Provides vehicle locations back to the home office at a set interval, allowing the fleetmanager to keep track of vehicle activity without calling the drivers.

• Facilitates "on the fly" adjustments to routes toaccommodate special situations, by locating the vehicle in the best position to make a service call or complete a requirement.

CONS:

• This type of system may actually require additional manpower to observe fleet status updates throughout the day.

• Depending on the interval of data transmission, monthly access costs can add up quickly. It is important to know how often updates will be required.

• Data stored on the internet is available for a limited time only, making it difficult to perform trend analysis over long periods of time.

GPS SIGNALS

www.

REALTIMEDATA

"Hybrid" (or Combined) System

PROS:

• Companies have access to comprehensive vehicle data as they need it, in real-time transmissions and in stored data.

• Even in the event of interrupted communication,vehicle data is stored in the on-board device for evaluation and long-term storage.

• Hybrid systems provide the most flexibility and adaptability to most business needs.

CONS:

• Using the communication features of a hybrid system requires an active Internet connection or other conduit, and may require a dedicated computer.

• Service contracts, connectivity and transmission charges apply when using the active part of the system.

The "hybrid" system combines the functionality ofpassive and active systems into a package thatgives companies the immediacy of real-time vehi-cle data as well as the comprehensive informationstorage of a stored data system. By combining thebest features of each system, the hybrid GPS fleetmanagement system is an ideal tool for giving man-agers real-time vehicle locations and statusupdates, as well as the data logging that would betoo costly and cumbersome over Internet-basedservices.

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GPS SIGNALS

www.

REAL-TIME+

STORED

DATA

L-E-O Satellite System

Using a dedicated constellation of Low-Earth-Orbit (LEO) satellites, this two-way mobile satel-lite tracking system allows for instant digital com-munications between drivers and their respectiveoperational bases.

Typically used by over-the-road trucking compa-nies, this is the most expensive approach to GPSfleet management. It is also the most comprehen-sive in terms of connectivity and range - LEO-based systems provide service where conventionalcommunications are not feasible, such as in marineshipping, remote areas of the world, and ruralareas where cellular service is not established.

PROS:

• System allows true global real-time two-way communication with highest accuracy of all available systems.

CONS:

• Generally this is the most expensive system on the market; infrastructure and monthly service costs are prohibitive for most small- to mid-sized companies.

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GPS SIGNALS

www.

REALTIMEDATA

Putting it all Together:

Equipping a Business for GPS

The good news is that the most expensive compo-nents of the technology, the 24 GPS satellites, arealready in place and paid for. Here are some of thecommon items and accessories needed for integrat-ing GPS fleet management into business operations.

For the business fleet: Vehicles will require anonboard GPS receiver, typically installed insidethe vehicle with a GPS antenna mounted to receivesatellite signal data.

Depending on the specific monitoring needs, addi-tional sensors can be installed on doors, accesspoints, and special equipment. These sensors aretypically linked to the vehicle unit using input/outputports, similar to peripheral devices on a computer.

The onboard vehicle unit is responsible for receiv-ing GPS satellite information, interpreting the datato determine a location, using changes in locationto compute speed and direction, communicatingwith the base station (home office) and loggingvehicle movement data.

For the office: The "active" and "hybrid" fleetmanagement systems generally require Internetconnectivity and possibly a base station antennafor receiving incoming data.

"Passive" fleet management systems require anoffice-based device that accepts the vehicle dataand transfers information to a computer foranalysis.

For the Information Technology (IT) department:It is recommended to have one computer dedicatedto fleet management operations. Typically, the

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computer will have the MS Windows operating sys-tem, at least 128 MB of RAM to support the datamanagement requirements, and a specific softwareapplication designed for the supported fleet man-agement system. Some systems allow integrationof the fleet data into an existing enterprise resourceprogram (ERP) or other selected databases.

Fleet management software: The linchpin formodern fleet management systems is the softwarethat enables interpretation and analysis of compre-hensive and historic vehicle data.

While not all fleet management software packagesoffer identical features and functionality, here aresome of the common modules and components onthe market:

System Interface: Support software for fleet man-agement systems is typically designed to have thelook and feel of standard business applications,

On the best systems, the data management portion of the software works directly with the mapping software to provide

seamless reporting and facilitate ease of use.

including the drop-down menus and graphical userinterface (GUI) functionality found in mostMicrosoft Office® or comparable products. On thebest systems, the data management portion of thesoftware works directly with the mapping softwareto provide seamless reporting and facilitate ease ofuse. Reports and comparative data can be viewedon screen or printed, and many programs offer theability to "drill down" for a more detailed assess-ment of vehicle data.

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Business Record Keeping: Data-driven fleet man-agement systems, ones that feature download capa-bility and transfer of a broad spectrum of vehicleoperational information, also help to simplifyrecord-keeping, verification of employee hours,customer service and other aspects of the businesswhere vehicle use becomes an issue.

Daily logs can be completely automated, makinghistorical review of driving trends, route efficiencyand time spent with customers an intuitiveprocess. Many fleet management systems are ableto provide graphical displays of key data sets, suchas miles driven, engine idling, on-board systemsuse; and isolate exceptions for careful evaluation,

including instances of speeding, driving afterauthorized hours, or use of equipment outside thescope of the business.

Interface with existing Enterprise ResourceProgram (ERP): Existing database-driven manage-ment systems, such as Oracle® or SAP®, make itpossible for managers to make decisions based onfacts and real-time business information. A fullyoptimized GPS fleet management system can offerthe same capability. Integrating fleet operations,vehicle route data and historical analyses into theexisting ERP streamlines the decision-makingprocess and facilitates more efficient operations.

Detail Report - This comprehensive report shows a complete picture of the activities of one vehiclefor one day. Information is provided in detail, by trip as well as being summarized for the day.

FLEETBOSS AUTOGRAPHICS Mapping Software v4.0 File Communicate Records Reports Settings Window Help

Map for R.S. From: 8/30/1999 To: 9/1/1999 [7AM to 7PM]

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Checklist:

Selecting a GPS Fleet Management System

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For example, a company that maintains a fleet ofvehicles for its geographically-dispersed salesforce is not likely to need minute-by-minuteupdates on vehicle location, but may need to veri-fy mileage and other information for lease, tax ormaintenance purposes.

Seamless System Integration

In many cases, a GPS fleet management systemwill require installation of vehicle devices and spe-cial software to translate the fleet operations datainto a format usable by the business. This mayinclude mapping software, a vehicle database, andgraphics to depict trends and cumulative informa-tion. There are typically minimum system require-ments, including the computer's operating system(UNIX, MS Windows, etc.) and random-accessmemory (RAM) capability for running the software.

Some systems on the market will require a stand-alone computer dedicated for fleet operations, anddepending upon the type of system selected, mayrequire additional communication infrastructure,such as dedicated telephone lines, antennae forsignal reception, Internet connectivity and ancil-lary hardware to support the fleet management tech-nology.

Cost-Benefit Analysis

Some providers of GPS systems do little more thanship off-the-shelf tracking devices and software tobusinesses in a "one size fits all" approach. For asmall business with very few vehicles, this may bean acceptable solution.

Choosing the "right" system depends on the busi-ness and its typical day-to-day fleet operations; thescope, size and structure of the enterprise; and thelevel of vehicle detail required.

Information currently used in dispatching vehiclesor assigning driver routes serves as a viable baseline for putting a GPS fleet management system inplace. It is important to balance the "need to know"

“For most companies, current and accurate data is the most critical

aspect of fleet management.”

against the "nice to know" information when choos-ing the appropriate system. Having too much datais not always a good thing - filtering out extraneousinformation allows the business to focus on the keymetrics of success for fleet operations. For mostcompanies, current and accurate data is the mostcritical aspect of fleet management.

In assessing the business case for a fleet manage-ment technology solution, there are six criticalareas to evaluate:

Value-Added Functionality

Proliferation of GPS systems in the marketplacefor every imaginable application requires a senseof due diligence in determining the best solutionfor the specific needs of the company. A companyconsidering fleet management technology systemsshould first have a clear vision of what it needs tocontrol its existing operations, then look at thepotential solutions for enhancing the business.

The best fleet management solutions providers onthe market take a consultative approach to equip-ping their customers with the most appropriate fleetmanagement technology system that suits the busi-ness needs.

Simplicity of Use

Ideally, a GPS fleet management system will blendalmost transparently into the business operation. Itshould not require significant driver interaction tooperate, and in many cases the best solution is onethat is truly "out of sight, out of mind."

Stability of Service Provider

Depending upon the type of system purchased,ensuring the viability of the servicing companymay be a critical factor in the sustained value ofthe system. Particularly with ACTIVE andHYBRID fleet management systems, if the serv-ice provider goes out of business, this could ren-der the fleet management system obsolete.Determine whether the fleet management system

“... if the service provider goes out of business, this could render the fleet

management system obsolete.”

could be transferred to another service provider,or if it can operate as a "stand alone" systemusing commonly available cellular channelcapability.

Service and Future Compatibility

An important part of the selection process is anevaluation of the contingencies associated withacquiring technology systems:

Who is going to help if something goes wrong?

Each company has its own approach to service.Off-the-shelf systems shipped to customers forself-installation often come with no dedicated sup-port. It is important to find out what types of assis-tance and warranties are available to protect theinvestment and get the most out of the system.

To avoid misunderstandings, it is important tospell out exactly what is included in the sale (suchas installation, software consultation, service calls,etc.) prior to signing a contract.

What happens if the technology changes makingthe system obsolete?

Here, it is important to determine if upgrades to thesystem and/or software are made available to cus-tomers, and at what charge? Are map updates pro-vided, and if so at what interval and at what cost?

What will it cost to change the terms of service?

As business needs change, it may be necessary toadapt the system to handle different priorities.Identify available options for each system up front,and realistically assess what features are needednow to improve business operations. Then look atthe future goals of the business to determine pos-sible value-added features that will assist inachieving those objectives.

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FAQs:

Following are some of the questions to askin the process of equipping a business fleet:

Employee (Driver) Considerations:

What (if any) training is required in order for thedrivers to use the system?

Are there any legal or employment considerationsinvolved in using a fleet management system?(Based on locality)

Installation Considerations:

Where will the GPS receiver be installed on myvehicles?

Will the driver be able to access or tamper with theon-board devices? Will they need to touch the system at all?

Will the device interfere with operation of the vehicle?

Communication and Coverage Considerations:

Can the system use existing cellular service (i.e. cellular phones issued to employees)?

Will drivers be able to communicate using voiceand/or text with this system?

How will data be transmitted to and from the vehicle?

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What are the different methods of transmittingdata, and what is the most cost-effective optionfor my business needs?

CDMA - Code-Division Multiple Access, a spe-cial method of coding message traffic for interpretation at the receiving end

CDPD - Cellular Digital Packet Data, uses pack-et overlay transmission for efficient data transfer

GPRS - General Packet Radio System, uses effi-cient network access to only send data as it becomes available, primarily using GSM architecture.

GSM - Global System for Mobile Communications, GSM is the standard for cellular data trans-mission in Europe, and is used in over 160 countries worldwide.

Satellite-The most expensive method of communi-cating, it is also the fastest. Typically, this option is reserved for over-the-road truck-ing companies and conglomerates with global fleets.

TDMA - Time-Division Multiple Access (sometimes referred to as D-AMPS) enables digital transmission of radio signals to interface between cellular and radio systems. The ability to use multiple chan-nels to carry both data and voice makes this an ideal standard for virtual private networks (VPN) and other common busi-ness applications.

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What range of coverage will I have fortracking vehicle operations?

Data Accuracy:

How can I be certain that the locationand vehicle activity data is accurate?

What is the margin of error for vehiclelocations?

How long will vehicle data be accessible?What is the storage capacity?

Mapping Coverage:

Does this fleet management systeminclude mapping software?

Does the mapping cover the areas wheremy fleet operates?

How frequently is the software updated toinclude new developments, businesslocations and other geographical considerations?

Are upgrades available if my businessexpands to other regions? Other countries?

Conclusion:

What's the Next Step?

Learning about the technology and applica-tions available for fleet management is animportant first step. Armed with the basics ofGPS technology and common system capabil-ities, it is now a question of selecting the rightsystem to fit the business needs.

Consider what is important to the businesstoday, and what it will take to stay competitivein the future. Carefully weigh the importance ofeach of the benefits a fleet management sys-tem brings to the equation, including reducedrisk, improved employee safety, more efficientoperations, reduced costs and overallenhanced profitabil ity.

Some of the companies offering GPS fleet man-agement systems for commercial fleet purchasetake a consultative approach to equipping theirclients' vehicles based on that business' particu-lar needs. Working with someone who knowsthe technology and the business applicationsincreases the likelihood of a successful imple-mentation. The consultant can typically pro-vide a cost-benefit analysis to show conserva-tive and best-case scenarios, and in manycases can offer a limited trial or case study toshow what GPS fleet management technologyis capable of.

Evaluating and implementing new technologydoes not have to be stressful or prohibitivelyexpensive. First, find out what the businessneeds are, taking into consideration how theability to measure, monitor, locate and trackcompany vehicles could enhance the way thecompany operates. Then evaluate the sys-tems that come closest to meeting current andfuture business needs. The biggest factor in asuccessful system purchase is identifying whatthe company will need to achieve its goals.Thank you for taking time to learn about GPSfleet management systems and applications.

Geographic Information Systems (GIS) - a combinationof the geospatial data systems and software designed tosupport transportation routing and logistics, generallyfor a municipality or regional area.

Global Orbiting Navigation Satellite System(GLONASS) - a Russian space-based navigationsystem comparable to the American GPS system,GLONASS is comprised of 21 satellites in 3 orbitalplanes, with 3 on-orbit spares.

Global Positioning System (GPS) - A technology thatuses signals and data from multiple satellites to deter-mine a location anywhere on Earth.

Global System for Mobile Communications (GSM) -originally short for 'Groupe Spécial Mobile' GSM is thedigital wireless communication standard for Europe, aswell as South Africa, Australia, and many Middle andFar East countries.

Intelligent Transportation Systems (ITS) - A generalterm for many technology systems used in highway, railand other transit to improve mobility, reduce accidents,and improve transportation overall, i.e. electronic tollcollection systems, synchronized traffic signals.

NAVSTAR - The Navstar Global Positioning System(GPS) is a space-based constellation of orbiting satel-lites providing navigation data to military and civilianusers all over the world.

"Ping" - A vehicle status update request, available onlywith fleet management systems offering active/real-time vehicle location capability.

Selective Availability - prior to May 2000, the US mil-itary intentionally degraded the accuracy of GPS signaldata for civil and commercial purposes as a protectivemeasure. The Department of Defense retains the rightto restrict signal accuracy in the interest of US nation-al defense.

Telematics - a general term referring to emerging tech-nologies in automotive communications, combiningwireless voice and data capability for managementinformation and safety applications.

Automatic Crash Notification (ACN) - vehicle onboardsystem designed to notify a designated call center in theevent of a significant collision, reporting the vehiclelocation, speed and severity of the crash, deployment ofairbag(s) and other diagnostic information from onboardsensors (sometimes referred to as "Mayday Systems")

Automatic Vehicle Location (AVL) - the automatedsystem and related technology of tracking vehicle loca-tions. AVL systems utilize GPS technology coupledwith wireless communication systems to provide a vastarray of data to the home station and/or fleet operator.

Data Packet - Information about a vehicle or group ofvehicles, or other non-voice data, transmitted via com-munication conduits (cellular, Internet, etc.) to the fleetmanagement system computer.

Differential GPS - using data from at least four (4) GPSsatellites, this method of GPS corrects for a naturallyoccurring error to achieve a more precise location, usu-ally within 2 meters.

Enhanced 911 (E-911) - based on a FederalCommunications Commission (FCC) mandate, all cellu-lar phones built after October 1, 2001 must beequipped to identify the caller's location at the 911 CallCenter.

Galileo - essentially the European version of GPS, thissystem is currently under development. It will ulti-mately consist of 21 to 28 satellites in a mid-Earth orbit(MEO) and between 3 and 8 satellites in geosynchro-nous (GEO) orbit, which may use signals from GPS.

General Packet Radio System (GPRS) - packet switch-ing technology where information is transmitted inshort bursts of data over an IP-based network allowscontinuous connection to data networks in support ofmany kinds of applications, including messaging andrapid data transfer.

Geocoding - Using latitude and longitude data from theGPS receiver to determine the map location, and (withsoftware) find the exact street address or block address.

Glossary:

Common GPS Technology and Fleet Management Terms

19

We hope this paper has helped you understand the

technology and the benefits of GPS fleet management

systems. If we can be of further assistance or to

request additional information, please contact us:

1.877.265.9559; or email us to info@fleetboss.com

Corporate Headquarters:

Fleetboss Global Positioning Solutions, Inc.

241 O’Brien Road

Fern Park, FL 32730

www.fleetboss.com

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